A Large Number Of Overseas Grey Cloth Orders Are Cancelled, And A Price War Is Imminent

In late March, grey fabric market continued to weaken, most varieties have fallen to the February increase. In order to get rid of the inventory and recover the funds, the weaving factory tried to attract orders by lowering the price, but the effect was not ideal.

On March 24, the head of a factory in Wuzhong revealed that with the continuous spread of the epidemic in the world, more than 50 countries and regions have declared a state of emergency, and the cancellation of orders is expected. However, the most troublesome thing is that the orders that have already been executed are cancelled in the middle of the way. As the enterprises generally only charge about 30% deposit from customers, which is far from reaching the cost line, the loss of enterprises is relatively large. Many enterprises said that on the one hand, it is no longer easy to receive orders, and the orders are cancelled again. On the other hand, after receiving a small number of new orders, they will strive to implement them as soon as possible to avoid the occurrence of variables in the process. In order to cope with the adverse situation of the lack of foreign single, most of the weaving mills have recently turned their attention to domestic production by expanding domestic demand and reducing foreign orders.

It is understood that due to the obvious oversupply of grey cloth market, the price war has begun. In order to attract orders and to inventory, grey fabric prices fell again, and has entered the decline channel. On March 24, the price of 210t polyester taff was 1.02 yuan / m, 150D cationic plain cloth was 4.70 yuan / m, 228t dull Taslon was 9.20 yuan / m, and 300t dull spring Asian textile was 5.50 yuan / m. The overall price level fell by 0.1-0.3 yuan / m compared with the end of February, and the increase in February was basically flat.

Due to the spreading momentum of overseas epidemic situation, the export orders of enterprises may continue to decrease. With the increase of domestic enterprises returning to work and production, the price war caused by de stocking in grey fabric market may last for a period of time, and the downward pressure still exists for its price.